California Hits Up 8 Banks For $5.4 Billion In loans

Fearful that federal debt problems would leave it hanging, California has passed the hat around to eight banks and wound up with loans for $5.4 billion. The interest rate: an astoundingly low 0.237 percent.

The L.A. Times reports the state treasurer, fearing that a potential federal default might throw financial markets into turmoil, sought the short-term loan, due Nov. 22, in order to tide the cash-poor state over before it starts to receive tax revenue later in the year. The state plans to pay the loan off with notes it sells to investors.